=Macy's (M) reported earnings on Thur 10 Nov 2016 (b/o)

Macy's misses by $0.24, reports revs in-line; reaffirms FY17 EPS guidance, improves comps guidance; discloses strategic alliance with Brookfield (BAM)  :

• Reports Q3 (Oct) earnings of $0.17 per share, $0.24 worse than the Capital IQ Consensus of $0.41; revenues fell 4.2% year/year to $5.63 bln vs the $5.63 bln Capital IQ Consensus.
• Comparable sales on an owned plus licensed basis were down by 2.7 percent in the third quarter. On an owned basis, third quarter comparable sales declined by 3.3 percent. The difference between the year-over-year change in total and comparable sales largely resulted from the closing of 41 underperforming Macy's stores at the end of fiscal 2015.
• "The trends we saw in the third quarter give us confidence that we can deliver our expectations for the fourth quarter and our guidance for fiscal 2016."
• Co updates guidance for FY17, continues to see EPS of $3.15-3.40 vs. $3.35 Capital IQ Consensus Estimate, now expects full-year 2016 comparable sales on an owned plus licensed basis to decrease in the range of 2.5 percent to 3.0 percent (Previously saw a decrease in the range of 3 percent to 4 percent), continues to see comparable sales on an owned basis to be approximately 50 basis points lower.
• The co also announced it is forming a strategic alliance with Brookfield Asset Management (BAM) to create increased value in its real estate portfolio.
  • Under the alliance, Brookfield will have an exclusive right for up to 24 months to create a "pre-development plan" for each of approximately 50 Macy's real estate assets, with an option for Macy's to continue to identify and add assets into the alliance. These assets primarily include owned and ground- leased stores and associated land, most of which are located in malls not owned by major mall owners. The breadth of opportunity within the portfolio ranges from the additional development on a portion of an asset (such as a Macy's-controlled land parcel adjacent to a store) to the complete redevelopment of an existing store.